LA County Home Health with Contracts

If you are looking for a skilled home health agency that has managed care contracts in place where referrals come to you versus you having to search for referrals, we have an excellent opportunity for you to enter the skilled home health space that affords you the ability to have an organic referral stream. Our sellers have created a niche home health agency that includes managed care agreements and strategic contacts that have allowed them to create a healthy cash flowing business. The 2023 Seller Discretionary earnings are at $520,000 with a sale price of $1,250,000 or two times multiple of SDE not including the goodwill component that comes in the book of business, the field staff, the name branding, the FFE and more. Due to the cash flow aspect of the business, we will be looking at working with SBA 7(a) buyers, preferably with healthcare experience and a support team in place. *

Why is this business being sold? Our sellers are very entrepreneurial in spirit, and they are opting to enter a new partnership within the healthcare industry. *

Let’s talk a bit about the agency. The business was established in 2018 as a California Subchapter S-Corporation. The agency received its initial CDPH license on August 26, 2019. The ACHC accreditation is currently effective from January 14, 2023, to January 14, 2026. The agency is located in the Valley (Los Angeles County) in a 1,027 square foot office space with a monthly lease of $1,335 and a lease expiration date of November 14, 2024. The agency does a case mix of 55% Medicare insured patients and 45% managed care patients with the managed care rates being at or above the Medicare reimbursement rates. *

PRICING. This agency is being priced at two times the 2023 SDE. *

TERMS. The seller will entertain all reasonable offers to include SBA 7(a) approved buyers. The seller will prefer no seller financing. Serious buyers only. *

SELLER PREFERS. (1) Buyer to have healthcare experience in operating a home health agency and (2) Buyer to have the funds available to proceed with a transaction (proof of funds), (3) Buyer to have access to patient referral sources and to registered and licensed nurses. *

SELLER RECOMMENDS. (1) Buyer to have the ability to generate patient referrals, (2) Buyer to have the required professional team member(s), (3) a professional team member (i.e., Medicare Consultant, Accountant, Lawyer) to assist with the due diligence request/review. *

ALL potential buyers must: (1) Sign an NDA and (2) provide Proof of Funds. *

DISCLAIMER: The seller is responsible for proving the accuracy of any information provided to the buyer's satisfaction. Information contained in this document is provided solely by the seller. No representations or warranties are provided by Healthcare Biz Advisors (a professional advisory group), its agents, representatives, or subsidiaries as to the accuracy, completeness, or validity of such information. Interested parties are encouraged to seek counsel from their accountant, attorney, Medicare consultants, medical billers, medical coders, experienced clinicians and/or other business advisors.

*Buyer to verify during due diligence